FIRS has suspended the issuance of tax exemption certificates to all entities.
NaijaOnPoint Nigeria reports that the Federal Inland Revenue Service (FIRS) has announced the immediate suspension of issuing tax exemption certificates to all categories of taxpayers, including pioneer status companies, non-governmental organisations (NGOs), and businesses operating in free trade zones.
In a public notice issued by the agency, FIRS said the move is part of ongoing reforms aimed at strengthening transparency and ensuring compliance with Nigeria’s tax laws.
“The issuance of Tax Exemption Certificates has been discontinued. Consequently, no further Tax Exemption Certificates will be issued,” the notice stated.
FIRS clarified that all certificates previously issued will remain valid until their stated expiration date but warned that no renewals would be granted once they lapse.
The tax agency emphasized that any claims for tax exemptions going forward must strictly follow legal provisions and FIRS-approved procedures.
“Any attempt to forge, alter, or misrepresent exemption status will attract strict penalties as prescribed by law,” it added.
The agency reaffirmed its commitment to building a transparent and equitable tax system and urged all stakeholders to comply with the revised framework.
“All further enquiries on the above subject should be addressed to the Executive Chairman,” FIRS said.
This development comes shortly after the Executive Chairman of FIRS, Zacch Adedeji, decried the massive annual revenue losses Nigeria suffers due to aggressive tax avoidance, particularly by multinational corporations. According to him, such practices undermine governance, erode public trust, and stall progress in public service delivery and infrastructure development.
Tax exemption policies were originally designed to stimulate key sectors by incentivizing export-oriented industries and businesses with long gestation periods. However, sources within FIRS indicate that a comprehensive review is underway to streamline the policy and eliminate abuse before any possible reinstatement of exemptions.